MANAGEMENT OF DIVERSITY IN MULTINATIONAL ORGANIZATIONS.   Term Paper ID:30075 Click to get this paper

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Paper Abstract: Discusses the concept of corporate culture and rise of multinationals. The inevitability of conflict caused by people of different backgrounds and cultures working rogether. Culture and standards of behavior. Diversity programs and how they can be used to minimize employee conflicts. Unique problems encountered by employees working overseas; selection process of expatriates. Paper Introduction: Introduction The rise of multinational companies and increased global diversification by even small companies has resulted in people of diverse backgrounds and cultures working together in the same office or for the same organization. Conflict in such situations is inevitable, but understanding the diversity issues can help companies implement programs designed to keep conflict at a minimum and to take full advantage of the many benefits which such diversity brings to an organization. Key to understanding how diversity is managed in multinational organizations is understanding the concept of corporate culture (which defines organizations), diversity programs and their use to minimize conflict among employees, and the unique problems that employees working overseas encounter. Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Thisbehavior can include everything from the accepted mode of dress to thelanguage that is accepted within an organization. If the standards are high, then new workers are expected toperform to that level. 82-1 4. In someorganizations, diversity trainers are consultants while in otherorganizations, they are added to the staff and diversity is dealt with onan ongoing basis (Witherspoon & Wohlert, 1996, p. 128-143. (1997, Spring). Journal ofApplied Behavioral Science, 34, pp. This means that managers and executives will beunder increasing pressure to establish diversity programs which recognizethat the American work force is no longer a homogeneous group of whitemales, but rather a diverse combination of gender and ethnicity. The issues surrounding quality of life depend largely on how muchemphasis companies put on developing high-quality diversity programs andaction plans which recognize the influence of corporate culture on thesuccess of the multinational organization. Rules such as a casual dress dayonce a month, vacation and parental leave, and whether or not the companyprovides an education reimbursement are covered in this manual. At thesimplest level, rules are imposed by management on employees, and relate toattendance, work habits and procedures. Management is also affected by these rules. Journal of WorldBusiness, 34, pp. The standards of behavior, or norms, that an organizational cultureestablishes define how newcomers to the organization are expected toperform. 81). Some companies try tomaintain a standard of living commensurate with the home country for theexpatriate, and many analysts agree that over-compensation can be a problemfor companies (Brewer, 1997, p. (1999, September). The organizational culture also includes the dominant values of thegroup as a whole. This means thatpotential employees must be considered not only because they possess theright technical skills for the assignment, but also because they areflexible enough to adapt to a foreign work environment and willing to takeon the challenges that a long-term assignment represents. The organizational climate is not aconcrete item, but describes how the company as a whole views individuals,how the individuals view the company, and what sort of atmosphere orenvironment the company is successful in creating. 87). Once the compensationpackage has been established, upward modifications can be made, ifnecessary. Corporate culture requires theserituals as a way of propagating the ideas and ideals which the companyconsiders important, and they serve as a way to inculcate new members intothe culture itself (Mor Barak, Cherin & Berkman, 1998, p. D., & Wohlert, K. Just as womenhave faced difficulty overcoming rituals in the United States, sominorities and foreigners who enter mainly white-male culture also havedifficulty. Organizational Culture and Ritual Rituals are an important part of culture in the anthropological realm,and they form an important part of culture in the context of companies.Corporate rituals may take the form of a welcoming breakfast once eachmonth to recognize new employees, or an employee recognition dinner heldperiodically to give credit to employees who have performed above the callof their specific responsibilities. (1996, April-May). In other words, diversity programs can give companies acompetitive edge in the marketplace (Jain & Verma, 1996, p. Witherspoon, P. Punnett, B., & Clemens, J. If, on the other hand,members of the organization regularly flout the procedures as specified inthe handbook, it may indicate that the company has a more relaxed approachtoward formal authority elsewhere in the organization. Helping employeeslearn the tools of day-to-day social and business interaction can help themfeel more comfortable more quickly, and thus help them improve theirproductivity during the foreign assignment. 391), it may be more prudent to have internal staff members trained indiversity responsible for the training of the overall organization. Similarly, as word spreads that aparticular organization has a strong diversity program, it is likely tofind it easier to attract and retain high quality workers with diversebackgrounds. To somedegree, observers can learn much about an organization by the way that rank-and-file employees react to the formal procedures. C., & Verma, A. 383). Such a policy can also be harmful tothe employee, since it is simply impossible to maintain the same standardof living to which the employee is accustomed in all countries. (1999, April-May). This is the underlying problem thatmanagers face when trying to develop a diversity program: there is littleempirical research which can help guide them in setting up a program thatwill be worth the time and expense that the company will put into theproject. Just as in a larger societal culture, anorganization's culture supports certain language and behaviors from itsmembers. Definitions As with "culture" when used in an anthropological sense, there areessentially six factors which can be found in organizational cultures:observed behavioral regularities, norms, dominant values, philosophy, rulesand the organizational climate (Moore, 1999, p. Just as not everyindividual is right for every job, not every employee is right forexpatriate work (Punnett & Clemens, 1999, p. If employees have realistic expectations before they arrivein the country, they are less likely to be unpleasantly surprised aboutworking conditions, living conditions, or other factors affecting theirdaily lives (Punnett & Clemens, 1999, p. E., Cherin, D. Doing business overseas has become increasingly common in recentyears, and some companies have become well-attuned to helping employeesadapt to day-to-day problems such as taxes, compensation and logistics ofcommunicating with the home office. (1999, Summer). These classescan include rudimentary language instruction, and also information ondifferences in cultures, both within the office environment, and in societyas a whole. Introduction The rise of multinational companies and increased globaldiversification by even small companies has resulted in people of diversebackgrounds and cultures working together in the same office or for thesame organization. C. (1996, October). 84). Diversity Program Development While Witherspoon & Wohlert suggests using an outside trainer (1996,p. Compensation is also a primary concern to both the expatriate and tothe company which is funding his activities. Conclusion Proponents of multinational companies argue that these companies haveincreased the quality of life for all concerned: shareholders in themultinational's operations receive benefit from the marketing opportunitiesthat the international arena provides, and workers in developing countrieshave access to jobs and material goods which would otherwise beunavailable. L. For example, although womenhave entered the workforce in large numbers in the United States, there islittle after-hours socializing which consists of men and women from workgetting together. Understanding and managing diversityamong groups at work. Philosophicaldifferences can be among the most difficult to resolve because they are notassociated with specific behavior, but rather with the way in which eachgroup approaches work, and the role that work is given in their everydaylives. While the business community as a whole recognizes that diversity is away of life in the workplace, particularly in the international workplacewhich characterizes today's business environment, there is no clear-cutagreement as to how to communicate that reality, or the ramifications ofthat reality, to the workforce. Conflict in such situations is inevitable, butunderstanding the diversity issues can help companies implement programsdesigned to keep conflict at a minimum and to take full advantage of themany benefits which such diversity brings to an organization. By implementing a carefully crafted diversityprogram, companies can reap the full benefit that multinational operationshas to offer. Thiswould enable the company to tailor a training program to meet its uniquerequirements, and would allow it to establish certain guidelines fordiversity training that would enable all employees to receive the samequality of training. Employeeswho find companies which foster diversity are more likely to remain inthose organizations than in companies which do not recognize the importancethat diversity plays in the work place. Diversity is good for business.Journal of Accountancy, 188, p. According to analysts, 47.5percent of the work force was composed of women in the late 199 s, and 29percent of the net additions to the work force overall were non-whites(Carlozzi, 1999, p. These five characteristics contribute to the last factor which Moorecites, that of organizational climate. Observed behavioral regularities are typified by the language, tasks,jargon and roles which members of the organization use and expect to findwithin the organization. Mor Barak, M. Managing workforcediversity for competitiveness. Critics of international trade suggest that multinationalcompanies use the economic need of developing nations in order to obtainnatural and human resources at far below market prices in their owncountries, and that the exploitation of these resources is detrimental tothe global economy in the long-run. International Journal of Manpower, 17, pp.14-29. Rituals as Barriers in Organizations Some rituals in organizations serve as barriers to new members of theorganization, maintaining the status quo, or at least maintaining power inthe hands of those who currently possess it. (1998, March).Organization and personal dimensions in diversity climate. International cultural diversity andthe design of management accounting systems. 69-77. Thus,dinners marking and celebrating the length of service of employees, canmark rites of passage which encourage the long-term commitment to theorganization that is critical to the organization's success. When companies relocate employees to other countries, or when foreignnationals are brought into a home office, they may be familiar with somecorporate rituals, but not with those influenced by the country culture.For example, some corporate cultures may encourage women and men gatheringtogether socially after work while country cultures would prohibit this. References Brewer, P. Here, the issue is not one of inviting women to an after worksocial event, but introducing minority workers to those who can help theircareers. Reasons for Diversity Programs Diversity programs have become popular in the United States in recentyears because of shifting demographics. 81. 375-399. Dissatisfaction withthe organizational climate is one of the main reasons that workers leavetheir current place of employment. The philosophy of an organization affects every aspect of theoutput of the group, and can be a point of concern when management'sphilosophy differs significantly from the workers' philosophy. Culture and Standards of Behavior Managers and peers have it within their purview to direct andinfluence the behavior that individuals exhibit within a company. White workers may routinely be given extracurricular assignmentsand introduced to vice-presidents, for example, while minority workers arenot. Cross-national diversity: Implications for international expansion decisions. Because ofthis, companies must carefully put together compensation packages whichtake into account the inconvenience of being away from home, but which arealso realistic in light of the target country. 2 8-221. Such issues include how families are treated whenan employee is relocated. Organizational culture also includes the rules by which workers areexpected to abide. 21 ). The rules of a company help setthe organizational culture in the amount of freedom they give to individualworkers, and the roles that the rules set up between workers and managers. If the formalprocedures are strictly adhered to, that may say much about theorganization and its respect for formal authority. In this case, the organizational culture will be inconflict with management's goals until such time as a resolution can bereached. Organizational philosophy is also cited by Moore as a part oforganizational culture, and this represents the belief structure whichpermeates an entire organization (Moore, 1999, p. 13 ). An approach todeveloping communication strategies for enhancing organizational diversity. In the case of long-term assignments, companies may want to interview the spouse of theemployee; this is important when the spouse is also relocating, but canalso be important if the employee will be gone from home for an extendedperiod of time. Jain, H. L. Much of the information available isanecdotal, with the result that human resource managers are left trying topull together the successful elements of a diversity program without strongresearch to support their decisions. The lack of empirical information available to human resourceprofessionals faced with developing a diversity program can be asignificant issue for many companies. When the person performing the introductions or making the jobassignments is white, these actions take on the aura of ritualisticdiscrimination. It is in such classes that Americans learn that Australians donot tip and that English cars have bonnets, not hoods. Afemale executive from the United States might well have difficulty adaptingto the rituals of her own company in a foreign country, particularly whenthe country culture differs greatly from the American culture. Moore, S. However, so-called "soft" issues maypose an even greater block to employee productivity and long-term successwith the organization. 2 8). Other barriers exist within organizations, as well. In the case of working mothers, it is usuallythe woman who is responsible for picking children up from childcare.Rituals can formalize these barriers as men may be used to getting togetherfor a beer after work, and may feel uncomfortable inviting a woman withwhom they work to join them (Mor Barak, Cherin & Berkman, 1998, p. Men continue to go out with men after work, and women goout with women (typically). 7 ). Strategies which work withdomestic organizations and domestic employees may well falter when appliedto foreign operations. Journal of European Industrial Training, 23, pp. 131). The Journal of Business Communication, 33, pp. The structure of the compensation and the standard of living which theemployee can expect should be carefully explained to employees who may bemoving overseas. Setting realistic expectations of the living situationcan be important in helping employees adapt to their new livingenvironment. A., & Berkman, S. However,such a consequence can cause upheaval in the household, particularly if thespouse has a job in the United States, or if there are children. In some cases, the family will travel with theemployee; this is most often the case in long-term assignments. Key tounderstanding how diversity is managed in multinational organizations isunderstanding the concept of corporate culture (which definesorganizations), diversity programs and their use to minimize conflict amongemployees, and the unique problems that employees working overseasencounter. If the standards are average or low, then newcomersare expected to reduce their output, if necessary, in order to keep therest of the group from looking bad. However, it is much more difficult to scale back an overlygenerous compensation package once the employee has accepted it. Some companies use specialized training classes to help employeesadjust to the cultural changes they will be encountering. 19). Carlozzi, C. These skills areimportant regardless of how long the assignment will last, and businesstrips lasting only a few days may have long-term consequences which shouldnot be dismissed (Punnett & Clemens, 1999, p. The company may have apolicy condemning chronic tardiness, but disgruntled employees may use suchbehavior to rebel against increasing production quotas, layoffs or otherperceived injustices. One way to solve this problem is throughthe use of diversity trainers, who come to the job site and communicateboth what diversity is and how it affects the employees directly. 128). Mid-American Journal ofBusiness, 12, pp. Standards of behavior are set formally through a company's internalprocedure manual, which is often developed by the human resources group.These procedures lay out the formal organizational processes, but may setthe tone for informal processes, as well. Managing the Expatriate Successful multinational organizations have learned that successfulexpatriate operations begin with the selection process. These values relate to the level of importance given tospecific items, such as absenteeism and quality. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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